Chipotle Mexican Grill Inc (CMG)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	11,313,900	9,871,650	8,634,650	7,547,060	5,984,630
Receivables	US$ in thousands	211,192	168,495	154,621	193,663	387,283
Receivables turnover		53.57	58.59	55.84	38.97	15.45

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $11,313,900K ÷ $211,192K
= 53.57

Based on the data provided, Chipotle Mexican Grill Inc's receivables turnover has shown a significant increase over the years. In December 31, 2020, the receivables turnover was 15.45 times, which indicates that on average, the company collected its accounts receivable 15.45 times during the year.

By December 31, 2021, the receivables turnover ratio increased substantially to 38.97 times, reflecting a quicker collection of receivables compared to the previous year. This suggests that the company is managing its accounts receivable more efficiently.

The trend continued with a further increase in the receivables turnover ratio to 55.84 times by December 31, 2022, indicating an even faster collection of receivables. This improvement in efficiency may be due to better credit control or collection practices implemented by the company.

In December 31, 2023, the receivables turnover reached 58.59 times, showing a continued strong performance in collecting receivables promptly. This high turnover rate suggests that Chipotle Mexican Grill Inc is effectively converting its credit sales into cash.

However, by December 31, 2024, the receivables turnover ratio slightly decreased to 53.57 times, which could be attributed to various factors such as changes in credit policy or customer payment behavior.

Overall, the increasing trend in the receivables turnover ratio for Chipotle Mexican Grill Inc indicates that the company has been efficient in managing its accounts receivable, collecting payments promptly, and maintaining healthy liquidity levels.